Dar es Salaam: The state-owned Air Tanzania Corp. may have a boost after the new government is formed. As of now the national carrier flies to a limited number of domestic routes due to less number of planes because of less funding.
Acting Chief Executive Officer of Air Tanzania, Johnson Mfinanga, said in the commercial capital of Dar es Salaam the carrier may have a turnaround strategy after October 25 general election when the new president is elected. The country may consider selling stake of it to private players.
Presently the carrier does not have enough aircraft and so is not able to compete in the business. Flying to restricted routes is simply a strategy to maintain the presence and waiting for the government to take a final move.
Mfinanga added after a study conducted by World Bank earlier this year the decisions on proposals of private players to invest in the carrier for expansion have been delayed due to the general election.
For past more than fifty years, since independence, the Chama Cha Mapinduzi party led by Tanzania President Jakaya Kikwere had been dominant force. It has been criticized by opposition Chama Cha Demokrasia na Meendeleo for not boosting up the operations of airlines. In an election campaign last month the party has promised to invest in Air Tanzania if comes to power.
The party’s presidential candidate Edward Lowassa added the level of investment in the Air Tanzania to depend on the partner they get.
In 2010 Air Tanzania claimed to have been in talks with few international companies including China Sonangol International Ltd. In 2006 the South African Airways sold back its 49 percent stake to the carrier that it bought in 2002. It made huge losses.
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